The Commerce Commission today issued a notice requiring Telecom to submit a standard terms proposal for the unbundled copper local loop (LLU) co-location service. The notice requires Telecom to specify the non-price terms and conditions on which it proposes to provide a co-location service to other operators.

"Like the standard terms determination processes for the bitstream and local loop access services, the issuing of this notice comes after the Commission held an industry scoping workshop on 5 April," says Telecommunications Commissioner Douglas Webb.

"Being able to co-locate their equipment in Telecom's local telephone exchanges is essential for other operators to be able to obtain access to the local loop."

A standard terms determination will contain both non-price and price terms and will apply for all operators wanting to co-locate their equipment in Telecom's local exchanges in order to access Telecom's local loop network to provide voice and/or broadband services to consumers. Price terms for access to the service must be set by the Commission.

Telecom must submit the LLU co-location standard terms proposal on 12 June 2007, the same date that the LLU standard terms proposal is due.

"Given that the two services will be acquired jointly in the future it is beneficial that industry have both proposals available at the same time for comment," says Mr Webb.

The Telecommunications Act specifies that, following receipt of a standard terms proposal, the Commission must seek submissions from access seekers before issuing a draft standard terms determination for further industry consultation, after which a final determination will be made.

Background

The copper local loop or local loop unbundling (LLU) refers to the standard copper pairs (telephone line) that run from a telephone exchange to an end-user's home. Access to the LLU allows other operators to provide voice and/or broadband services.

On 22 December 2006, the Telecommunications Act was amended to incorporate a process for the Commission to make a determination (a 'standard terms determination') on which a designated access or specified service must be supplied by an access provider to all access seekers requesting the service. A standard terms determination will include:

· non-price terms developed by an access provider, usually in consultation with access seekers; and

· price terms for access to the service, set by the Commission.

It is intended that a standard terms determination should be comprehensive enough and contain sufficient detail so that there is no need for an access seeker and access provider to enter into a separate agreement for provision of the service within the specified timeframe.

The Act specifies that the following steps must take place before a standard terms determination may be made by the Commission:

· Initiation of the determination process;

· At least one scoping workshop;

· Commission issues notice to provide a standard terms proposal;

· Access provider submits a standard terms proposal;

· Submissions from access seekers on the standard terms proposal;

· Commission issues draft standard terms determination;

· Parties to provide submissions on the draft standard terms determination;

· Commission issues standard terms determination.

A standard terms determination process for LLU co-location services was initiated on 28 March 2007 (co-location services enable other operators to co-locate equipment in Telecom's exchanges so that they can make use of the LLU to provide voice or broadband data services to consumers). The standard terms determination processes for LLU and bitstream services were initiated on 22 February 2007.

A brief overview of the key steps in a standard terms determination process is available on the Commission's web site www.comcom.govt.nz under Industry Regulation/ Telecommunications / Standard Terms Determinations / Overview